How can NYSIR ensure that members are protected against assessment?
A. NYSIR takes a multifaceted, conservative approach to protecting members against assessment. In addition to establishing a conservative reinsurance program using only superior reinsurers, NYSIR: • Has Towers-Perrin/Tillinghast, an independent actuarial firm, conduct a funding level study every year that is adopted by the Board of Governors. • Writes premiums to the highest possible actuarial confidence level, 95 percent, to insure that premiums adequately cover current and future predicted losses. • Maintains adequate reserves for losses with annual actuarial reviews to ensure the sufficiency of reserves. Those reviews, in turn, are reviewed by the New York State Insurance Department, A. M. Best and the National Association of Insurance Commissioners. • Adheres to a conservative approach with respect to investments and undergoes regular audits by the New York State Insurance Department, NYSIR’s reinsurers and outside auditors Ernst & Young LLP.
